Veterans Federation of The PH V. Reyes 2006 - Chico-Nazario Facts

VETERANS FEDERATION of the PH v.
REYES government is "[t]he most important

2006 || Chico-Nazario characteristic" in determining whether a
position is a public office or not. The
Facts: legis, exec or judicial portion of
VFP is a corporate body created in 1960 under RA 2650. sovereignty must attach to the office for
In 2002, it received Department Circular No. 04 from the the time being, to be exercised for the
Undersecretary of National Defense Angelo Reyes that it public benefit. Sovereign functions
is under the RA 2650, it is under the supervision and include promoting social justice or
control of the DND thus the DND will conduct audits. The stimulating patriotic sentiments of love
petitioners protested against the overbroad audit and of country.
asserted that it is a private non-government corporation b. In ACCFA v. CUGCO, the urgency with
since (1) it does not have a portion of the sovereign of the Constitution about social justice
functions of the govt, (2) civilian nature as its mandates land reform and socialized
membership is voluntary, (3) it has no budgetary housing is a compulsory function of
appropriation from DBM as its funds come from sovereignty
membership dues. It claims that it is a self-governing o Thus the functions of VFP fall
autonomous body with a Supreme Council as governing within sovereign functions.
authority. The protection of the interests
of war veterans is not only
Issue: Is VFP a private corporation? meant to promote social
justice, but is also intended to
Held: No. reward patriotism. All of the
functions concern the well-
Ratio: being of veterans. It would be
1. The 1935, 1973 and 1987 Constitution explicitly unjust to say it is beyond
prohibit the regulation by special laws of private sovereignty’s power to reward
corporations, with the exception of GOCCs. the people who defend it.
Hence, it would be impermissible for the law to 8. The fact that there is no DBM appropriation is
grant control of the VFP to a public official if it not a bar to future appropriation. VFP funds are
were neither a public corporation, an public for they can only be used for public
unincorporated governmental entity, nor a purposes. In the COCOFED case it says that
GOCC. It can also be said they cannot create "(e)ven if the money is allocated for a special
the VFP if it was neither of the 3 categories. purpose and raised by special means, it is still
2. Rep. Act No. 2640 is entitled "An Act to Create a public in character.
Public Corporation to be Known as the Veterans 9. Their contention that the DND did not historically
Federation of the Philippines, Defining its supervise or control it because membership is
Powers, and for Other Purposes" voluntary is erroneous, since laws are not
3. Any action or decision of the Federation or of the repealed by disuse, custom, or practice to the
Supreme Council shall be subject to the contrary. Furthermore, it does not bar a
approval of the Secretary of Defense. subsequent correct application of the law.
4. The VFP is required to submit annual reports of 10. Neither is the civilian nature of VFP relevant in
its proceedings to the President of the this case. The Constitution does not prohibit
Philippines or to the Secretary of National control or supervision of DND over a civilian org.
Defense. The DND Secretary is the alter ego of the
5. Under Executive Order No. 37 (1992), the VFP civilian Commander-in-Chief. This set-up is the
was listed as among the GOCCs that will not be manifestation of the constitutional principle that
privatized. civilian authority is, at all times, supreme over
6. In Ang Bagong Bayani – OFW Labor Party v. the military. Thus the creation of a civilian public
COMELEC, this Court held in a minute organization is not rendered invalid by being
resolution that the "VF Party is an adjunct of the under the supervision of the DND.
government, as it is merely an incarnation of the 11. The membership of the VFP is not the individual
Veterans Federation of the Philippines.” membership of the affiliate organizations, but
7. In Laurel v. Desierto, a public office, is "the right, merely the aggregation of the heads of such
authority and duty, created and conferred by affiliate organizations. These heads forming the
law, by which, for a given period, either fixed by VFP then elect the Supreme Council and the
law or enduring at the pleasure of the creating other officers,of this public corporation.
power, an individual is invested with some
portion of the sovereign functions of the Resolution:
government, to be exercised by him for the RA 2650 and DND Circular 04 is valid. VFP is a
benefit of the public." public corporation.
a. The delegation to the individual of some
of the sovereign functions of

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VETERANS FEDERATION of the PH v.

REYES government is "[t]he most important

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